Crossroads Shopping Center - Outlet Mall Branches Out

Shopping center branches out By Chris Anderson canderson@pantagraph.com NORMAL - Business condominiums will soon be included in the mix of retail and service companies occupying Crossroads Center on the Twin Cities' west side. Owners SugarOak Management Services LLC plans to sell nine existing units, totaling 33,425 square feet, at the center, 310 Wylie Drive, Normal, by June 1. Andy Walsh, SugarOak asset manager, said the entire south side of the development, totaling 127,010 square feet, will be converted to business condos by year's end. "Our tenants can lease at such low rates at the center ($6 per square foot), why not offer the units to buy? The center is not a walk-through, but a destination shopping facility," said Walsh. "We think business condos would be good for contractors, carpet installers, limo services and other businesses which need storage and parking. "Leases will be honored for all existing businesses, but they also can purchase their units, Walsh said. Thirteen of the 31 units are occupied. Square footage ranges from 1,202 square feet to 16,027 square feet. As with residential condominiums, business condominium owners control their space. Together, all condo owners, as members of the Crossroads Center Condo Association, will oversee common space, including public restrooms, parking areas and landscaping. Walsh said condos being sold in the first phase range from $100,400 to $237,600, or $40 per square foot to $50 per square foot. That compares to $86 per square foot to $135 per square foot for business condominiums for sale on east GE Road in Bloomington and Susan Drive in Normal. Jon Pritts, Coldwell Banker Heart of America Realtors commercial sales agent, said business condominiums are unique in the Twin Cities. "We look forward to seeing how things go at Crossroads. - This is a good way to attract business. The appeal is for individuals owning together," said Pritts. Walsh estimated annual operating costs at $3 per square foot to $3.71 per square foot based on a 25 percent downpayment for a conventional loan at 7.25 percent interest and a 20-year amortization. "We bought the property for cash in a foreclosure ($2.5 million in June 2004), so we have no debt. That's one reason we can offer such good prices," said Walsh. "All the units already have heating, air conditioning, plumbing, floor coverings and restrooms. We think anywhere from 300 to 500 businesses would be interested in the center condos. "Business condos have become popular in California where entire industrial parks feature such units. The trend also has taken hold in Florida and Georgia. Virginia-based SugarOak recently launched similar efforts in Indiana and Pittsburgh. Walsh said the Indiana property features two-story units that have attracted offices. In Pittsburgh, a mix of businesses, including retail, medical and service, already have purchased 30,000 square feet, said Walsh.